A lot of schools peg the grades to a fixed curve, at least for the 1L year.
One hypothetical school has a B curve where 70% get a B, 15% get a B+, 5% get an A-, and 2% get an A (with the rest being below a B). That means that you will almost certainly get a B. This matters because grades are all important. That's how you get your 1L summer job, and your 2L summer job which normally turns into your permanent offer.
A given hiring partner has no real clue that a 3.2 at X State is the equivalent of a 2.8 at Y University--so, a graduate from X State would have the advantage.